Dalata Hotel Group has declined a €1.27 billion all-cash takeover bid from Swedish hotel operator Pandox AB and Norwegian property firm Eiendomsspar AS. The proposal, made in May 2025, was seen by Dalata as undervaluing its business and growth potential.
Pandox-Eiendomsspar proposal and Dalata’s response
Pandox and Eiendomsspar, who jointly own a significant stake in Dalata, made a non-binding proposal of €6.05 per share, a 5% premium over Dalata's current share price. Despite the premium, Dalata's board firmly rejected the offer, stating that it "materially undervalues the Group and its prospects."
Dalata’s strategic review, launched earlier in 2025, had signaled openness to acquisition offers, yet the board remains committed to exploring options that could maximize capital opportunities. Dalata's board confirmed they are continuing discussions with other parties involved in the formal sales process (FSP), noting that Pandox had declined to participate in the FSP under the terms set out by Dalata.
Financial performance and market position
Dalata has seen a steady rise in its share value, with a year-over-year increase of more than 40%, and a 25% increase since the announcement of its strategic review in March 2025.
Despite the rejection of Pandox and Eiendomsspar's bid, Dalata's market capitalization remains strong at €1.25 billion, bolstered by ongoing acquisitions, such as the recent purchase of the 229-room Radisson Blu Hotel, Dublin Airport.
Dalata currently operates 61 hotels across Ireland and the UK, with plans to expand to 21,000 rooms by 2030, including entry into mainland Europe. The group's most recent full-year results showed an increase in revenue by 7.3%, reaching €652.2 million, alongside a 5.1% increase in EBITDA.
Pandox and Eiendomsspar’s next steps
Pandox and Eiendomsspar, who jointly control 36.8% of Dalata, have until July 15, 2025, to either announce a firm intention to make a formal offer or state that they do not intend to proceed with the bid.
As of now, the offer is not a firm proposal, and there is no certainty that any offers will follow the FSP or that a sale will occur.
Both Pandox and Eiendomsspar have significant interests in the hotel sector, with Pandox owning 163 hotels across 11 Northern European countries and Eiendomsspar holding 36% of the shares in Pandox.
Ongoing strategic review and future considerations
Dalata’s board reiterated that it remains focused on optimizing value for its shareholders through the strategic review and formal sales process. Shareholders have been advised to take no action regarding the Pandox offer as the review continues to unfold.
The board also emphasized that while the process is ongoing, no formal offer has been made yet, and there is no guarantee of any future transactions.
As the FSP continues, Dalata remains focused on expanding its portfolio and positioning itself for future growth, particularly with plans to enter mainland Europe and further strengthen its presence in the UK and Ireland.
